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Indian apparel market enters a new growth phase

Indian apparel market enters a new growth phase

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Feb 03, 2014 10:56 AM

Growing acceptance of technology and changing consumer preferences are increasingly becoming the new growth drivers in the Indian apparel market. Almost half of the retail apparel consumers in India are now shopping online. The affluent Indian consumer is spending more and follows a distinct pattern different from his Asian counterparts. Close to 70 per cent of affluent Indian consumers are shopping online and spending almost Rs 7,500 (US$ 120) on apparels on an average every month. Apart from providing ease of access, e-commerce also offers better offers and variety to the consumers. Experts are of the view that this trend is likely to dominate the apparel industry. The Indian apparel market is expected to grow over four-fold to reach US$ 200 billion by 2025 and become the fastest growing market in the world. US$ 200 billion by 2025 and become the fastest growing market in the world. Whilst the changing consumer behaviour continues to persuade marketeers to think out of the box, some traditional factors are still at play in determining the final choice of the consumer. For instance, a large chunk of consumers (almost 40 per cent) in India continue to look towards Bollywood and celebrities for purchase decisions and 25 per cent continue to buy unbranded traditional clothes. This has prompted e-commerce retailers to launch a range of celebrity endorsed and promoted brands to attract the consumer. The Indian consumer is changing fast and the trends need to be watched closely to leverage the full potential of the opportunity, which the market presents.

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